New labor codes make gratuity easier for contract workers

Business Nov 28, 2025

Big update: If you're a contract or fixed-term worker, you can now get gratuity after just one year of continuous service—down from the old five-year wait.
This change, thanks to the new labor codes under the Code on Social Security, 2020, is designed to give non-permanent employees better benefits and more flexibility.

Permanent staff? No changes for you

If you're a permanent employee, your gratuity rules stay the same—you still need five years of continuous service.
The shorter one-year rule is only for fixed-term and contract workers.
As Preetha Soman from JSA Advocates & Solicitors points out, exceptions for permanent staff only apply in cases like death or disablement.
So, no surprises there!